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Thirty-Something Homeownership has Declined, Have Millennials Given Up?
(Note: companies that
could be impacted by the content of this article are listed at the base of the
story [desktop version]. This article uses third-party references to provide a
bullish, bearish, and balanced point of view; sources are listed after the
Balanced section.)
In 1990, baby boomers whose median age was 35, owned nearly one-third of American real estate. In 2019, the millennial generation, whose median age is 31, own only 4%. The reasons for the sharp decline are many. Millennials face increased debt from student loans and do not have the financial ability to take on additional debt to buy a home. Millennials are delaying raising a family, which favors renting over buying. Whatever the reasons, it’s clear that buying habits have changed. The millennial generation that grew up watching the real estate and stock markets crash in 2007 is less trusting of traditional investments and more likely to focus on near-term spending. Is the American dream of home ownership dying, or is the next generation simply taking a more realistic approach to investing?